This CVar controls how many unique colors are available in an image's color palette in terms of the number of 0's and 1's, or "bits," which are used to specify each color. This does not mean that the image necessarily uses all of these colors, but that it can instead specify colors with that level of precision. For a grayscale image, the bit depth quantifies how many unique shades are available. Images with higher bit depths can encode more shades or colors since there are more combinations of 0's and 1's available.